Experiment A: First, suppose you asked households if they would like to receive an air filter. Of the 1000 households, 500 households requested and received an air filter, while the other 500 households did not request one. Lets call this Experiment A. You collect data on the following variables:

InfantHealth: Health indicator for infants in each household (Worst score = 1, Best score = 100)

AirFilter: Dummy variable = 1 if the household received an air filter, = 0 if no filter

MothersEducation: Mothers years of schooling (minimum 9 years, and maximum 22 years)

Analyzing data from Experiment A, you find the following regression result. Standard errors are in parentheses.

Regression 1: InfantHealth = 2.2 + 30.5*AirFilter + 3.5*MothersEducation

(0.8) (8.4) (0.9)

• Interpret the coefficient on AirFilter in regression #1. (One sentence).

• Calculatethet-statisticand95%confidenceintervalforthecoefficientonAirFilterinregression(#1).Isitstatisticallysignificant?
• Based on this result, your colleague says, Providing air filters is a good public policy because regression #1 shows that air filters cause better infant health. Do you agree that this evidence shows that air filters cause better infant health? Why or why not?